If you’re carrying credit card debt, you’re definitely not alone. American consumers carry a combined balance of $1.2 trillion, according to a recent report from the Federal Reserve Bank of New York. But here’s what might surprise you: getting out of credit card debt faster isn’t just about finding extra money to throw at it. There are specific strategies that can cut years off your payoff timeline and save you thousands in interest. Let’s walk through the approaches that actually work.

Start With the Right Mindset and Information

Before diving into specific payoff methods, take a moment to get organized. Write down each credit card you have, along with the current balance, minimum payment, and interest rate. This might feel overwhelming at first, but seeing everything on paper actually helps most people feel more in control.

Your credit card statements show exactly how much you’re paying in interest each month, and many now include a chart showing how long it’ll take to pay off your balance making only minimum payments. If you’re just paying the minimum on a $5,000 balance with a 20% interest rate, you’ll end up paying over $6,300 total and it’ll take you more than 17 years to pay it off. That’s the power of compound interest working against you.

Choose Your Debt Payoff Strategy

There are two main approaches that financial experts recommend, and both have proven track records:

The Debt Snowball Method

With this approach, you list all your debts from smallest balance to largest, regardless of interest rate. Pay the minimum on everything, but put any extra money toward the smallest balance first. Once that’s paid off, take the money you were paying on that debt and add it to your payment on the next smallest balance.

The snowball method works because it gives you quick wins that keep you motivated. When you pay off that first credit card completely, you get a psychological boost that helps you stick with the plan. A study published in Harvard Business Review found that people using the debt snowball method were more likely to eliminate all their debt compared to those trying to tackle highest-interest debts first.

The Debt Avalanche Method

This approach focuses on math over psychology. You list your debts from highest interest rate to lowest, then put all extra money toward the highest-rate debt while making minimum payments on the rest. Once the highest-rate debt is gone, you move to the next highest rate.

The avalanche method saves more money on interest over time, but it requires more patience since you might not see that first balance disappear as quickly.

Which should you choose? If you need motivation and quick wins to stay on track, go with the snowball. If you’re disciplined about sticking to a plan and want to save the most money, choose the avalanche.

Pay More Than the Minimum (Even Small Amounts Help)

This sounds obvious, but here’s what many people don’t realize: even paying an extra $25 or $50 per month makes a huge difference. On that same $5,000 balance at 20% interest, adding just $50 to your monthly payment cuts your payoff time from over 17 years to under 7 years and saves you more than $2,500 in interest.

Every additional dollar you pay goes directly toward reducing your balance, which means less interest accruing each month. Pay your bill as soon as you get it rather than waiting until the due date – this reduces the daily interest charges.

Consider a Balance Transfer

If you have good credit (typically 670 or higher), a balance transfer credit card can be a powerful tool. The best balance transfer credit cards offer 0% APR for 12 to 21 months, giving you a window to pay down debt without accruing additional interest.

Most balance transfer cards charge a fee of 3% to 5% of the amount you transfer, but this is often much less than you’d pay in interest. For example, transferring a $5,000 balance might cost you $150 to $250 in fees, but you could save thousands in interest if you pay it off during the promotional period.

Important considerations for balance transfers:

• You typically need good credit to qualify
• Make sure you can pay off the debt before the promotional rate ends
• Avoid making new purchases on the card until the transferred debt is paid off
• The promotional period might be shorter for new purchases than for transfers

Negotiate Lower Interest Rates

Here’s something many people don’t know: you can often get your credit card company to lower your interest rate just by asking. Credit card interest rates average between 21.76% and 23.3% as of late 2024, but if you’ve been a good customer, your issuer might be willing to reduce your rate.

How to Negotiate Successfully

Call the customer service number on your card and ask to speak with someone who can adjust your interest rate. Be polite but direct: “I’ve been a loyal customer for [length of time], and I’d like to see if you can lower my interest rate based on my payment history.”

What strengthens your position:

• A history of on-time payments
• Good credit score (around 700 or above)
• Being a long-time customer
• Offers from competing credit cards with lower rates

Even a reduction of a few percentage points can save you hundreds of dollars and months of payments. If they say no, ask when you can call back to reconsider, and try again in 3-6 months.

Find Extra Money in Your Budget

Look for places to redirect money toward debt payments, even temporarily. Cancel subscriptions you’re not using, eat out less frequently, or sell items you no longer need. Even finding an extra $100 per month can dramatically speed up your payoff timeline.

Consider picking up a side gig or freelance work specifically to tackle debt. When you have a clear purpose for the extra income, it’s easier to stay motivated. Apply any unexpected money – tax refunds, bonuses, gifts – directly to your debt rather than spending it.

Avoid Common Mistakes

Making only minimum payments: As mentioned earlier, this keeps you in debt for years longer than necessary and costs thousands in extra interest.

Taking on new debt while paying off old debt: If you’re working hard to pay down balances, charging new purchases defeats the purpose. Use cash or debit cards for spending until your credit cards are paid off.

Closing cards after paying them off: Keep the accounts open (but unused) to maintain your credit history and available credit. This helps your credit score, which can qualify you for better rates in the future.

Ignoring the root cause: If overspending got you into debt, address those habits while you’re paying it off. Create a budget and build an emergency fund so you don’t end up back in the same situation.

When to Get Professional Help

If your debt feels unmanageable or you’re only able to make minimum payments, consider speaking with a nonprofit credit counseling agency. They can help you create a debt management plan, negotiate with creditors, and potentially reduce your interest rates and monthly payments.

Remember, getting out of credit card debt is a marathon, not a sprint. The key is choosing a strategy you can stick with and making consistent progress. Even if you can only pay an extra $25 per month right now, that’s still progress toward financial freedom.

Key Takeaways:

• Choose either the debt snowball (smallest balance first) or avalanche method (highest interest rate first) based on what will keep you motivated

• Pay more than the minimum whenever possible – even small extra amounts make a big difference over time
• Consider balance transfer cards with 0% promotional rates if you have good credit and can pay off the debt during the promotional period

• Call your credit card companies to negotiate lower interest rates, especially if you have good payment history

• Avoid taking on new debt while paying off existing balances, and address spending habits that led to the debt